The Spot Exchange Rate for the Mexican Peso Is 0

question 48

Multiple Choice

The spot exchange rate for the Mexican peso is 0.093 CAD/MXN.If the one-year Canadian interest rate is 3.5% and the one-year Mexican interest rate is 9.0%,compute the implied one-year forward rate in CAD/MXN.

• A)0.101 CAD/MXN
• B)0.083 CAD/MXN
• C)0.096 CAD/MXN
• D)0.098 CAD/MXN
• E)0.088 CAD/MXN

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Definitions:

Personal Liability

Personal liability means an individual's legal responsibility to fulfill debts or obligations, which can extend to their personal assets.

Non-existent Corporation

A corporation that either has not been legally established or has been dissolved, thereby lacking legal recognition.

Undisclosed Principal

A situation in a contract where the existence and identity of one party are not revealed to the other party.

Liability

Legal responsibility for one's actions or omissions, which may result in being obligated to offer compensation for harm caused.